tag:blogger.com,1999:blog-6443862031662825789.post7095922337071738306..comments2023-10-09T18:02:34.790+01:00Comments on Paul Scott's UK Small Caps: Fri 27th July 2012 - Morning ReportPaul Scotthttp://www.blogger.com/profile/13081674666652796786noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6443862031662825789.post-6189950268060530592012-07-27T11:12:18.602+01:002012-07-27T11:12:18.602+01:00Hi Mark,
Bloody hell, that's a bit scary. I h...Hi Mark,<br /><br />Bloody hell, that's a bit scary. I had a quick look at their balance sheet, and they show a £11.4m pension ASSET! But then in the notes to the accounts, as you say, they disclose a £26m deficit in the notes to the accounts.<br /><br />Looking at note 5 to their last prelims announced on 2 April, the reconciling item seems to be £37.5m of "Unrecognised actuarial losses" which translates the £26m deficit into the £11.4m surplus which is reported on the Balance Sheet! But how can actuarial losses IMPROVE the situation, turning a deficit into a surplus? Totally bizarre, I don't understand this at all.<br /><br />They seem to be paying £2.6m p.a. overpayments into the pension fund, but despite this they still have enough cashflow to pay big divis.<br /><br />But I find the accounts totally misleading! The fact that a £26m deficit is not shown on the balance sheet, but actually presented as a surplus is outrageous!<br /><br />Thank you very much for pointing this out, and I will update my original post to reflect this, mentioning you).<br /><br />Best wishes, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-31737223658423652822012-07-27T10:58:44.108+01:002012-07-27T10:58:44.108+01:00Hi Paul,
Thanks for the report
Had a look at NAR...Hi Paul,<br /><br />Thanks for the report<br /><br />Had a look at NARS, as a stable looking high yielder. Unfortunately discovered that it has a £26m unfunded pension deficit, not shown on the balance sheet. Gross liability £83.3m - massive cf market cap. See note 15 to the accounts. That makes it a no-no for me.<br /><br />Cheers,<br /><br />Mark Bmarben100https://www.blogger.com/profile/15771273538338202431noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-37417866423541616372012-07-27T10:57:12.439+01:002012-07-27T10:57:12.439+01:00This comment has been removed by the author.marben100https://www.blogger.com/profile/15771273538338202431noreply@blogger.com